Store rollout strategy for a chain of dialysis center

Rolling out a new business model especially in the medical sector would require a deep understanding of the market dynamics and consumer preference. In a likewise study the client, an India-based chain of dialysis hospitals wanted an insight into the market for dialysis patients in six Tier-1 cities across India. The project had 4 key elements to deal with; sizing the total market opportunity and the addressable market opportunity, analysing the existing gaps in the current dialysis market in each city, the respective pricing for dialysis services in each of the six cities and to identify the key demographic and the insurance trends.

The approach was to understand the current market scenario; the key players and their market sizes, their practices and the gaps in customer needs to identify the market potential opportunity. We interviewed key opinion leaders in the dialysis market across the six cities to understand the broad trends and benchmark the key players. Next, we conducted primary interviews with different stakeholders like the hospital staff and the customers to gain hospital-level data on each of the players in this industry. The data was further used to assess the market size and to validate the broad trends. We were able to find out the total market opportunity individually in the six cities along with the addressable market.

An important part of the study was to interact with the important stakeholders like surgeons, doctors and gather insights about how the dialysis centre’s positioning would be an important attribute as a strategy. Interacting with the family members of the patients undergoing the treatment and collecting recommendations about the location was important too. The market opportunity for the dialysis centre would be its accessibility and the ease it provides to its customers. Also, a possibility of integrating it with application based technology would be helpful for the patients to place orders for their timely check-ups. A monthly monitoring based on creating a particular profile of the customer would be helpful for him as well to check his improvements. These are strategic improvements that could be included in the model which would, in turn, engage the consumers. Pricing is also an important aspect that would create a difference in building a strategy, as it is a common trend, as a predatory pricing model is helpful in customer acquisition of any new business.

We also provided the client with an in-detail analysis of customer demographics across the cities. The client was also provided with optimum dialysis prices from the prevailing prices in the six cities, to help them devise a pricing strategy.

The client was able to use the findings from the analysis to form a roll-out plan of new dialysis centres in the six cities based on supply gaps and market trends in each of the six cities.

Objective

To help an India-based chain of Dialysis hospitals conduct a detailed study on market for dialysis patients in 6 tier-1 cities in India

Sector

Healthcare delivery

Key Issues

• What are the gaps in the existing dialysis market for each city?
• What is the total and addressable market opportunity, respectively?
• How should the services be priced to maximize profits?
• What are the key demographics and insurance trends in each city?

Approach

• Key Opinion Leaders in this market in each city were interviewed to understand
  broad trends
• Primary research was conducted to get hospital-level data for all the players in the
  market and validate the trends
• Concise actionable recommendations were given to the client

Result

• Client was successfully able to quickly ramp up the roll-out of new centers due to
  in-depth understanding of market trends and dynamics for each city

Pricing Strategy

City Demographics

Market Sizing

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